Question
Dale owns a 25% capital and profits interest in the calendar-year HDLD Partnership. His basis for his partnership interest on July 1, 2014 is $200,000.
Dale owns a 25% capital and profits interest in the calendar-year HDLD Partnership. His basis for his partnership interest on July 1, 2014 is $200,000. On that date, he receives a proportionate nonliquidating distribution of the following assets:
|
| Partnerships Basis in Asset | Assets Fair Value |
| Cash | $120,000 | $120,000 |
| Inventory | 50,000 | 60,000 |
| Land (capital asset) | 70,000 | 100,000 |
a. What is Chips recognized gain or loss on the distribution, if any?
b. What is Chips basis in the inventory received?
c. What is Chips basis in land received?
d. What is Chip's basis in the partnership after the distribution?
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